Rectifying multi-level marketing activities

The Office of the Ministry of Industry and Trade has just issued a document notifying the direction of the Minister of Industry and Trade on rectifying multi-level marketing business activities.

In order to improve the effectiveness of managing multi-level marketing activities and prevent crimes that take advantage of this business model, the Minister of Industry and Trade requested relevant units under the Ministry and local Departments of Industry and Trade to urgently and synchronously deploy many key tasks.

In particular, the units are required to review, propose amendments and complete legal regulations to strengthen strict management of multi-level business activities, especially for new licensing. Coordinate with the Ministry of Public Security to propose amendments to the Penal Code related to crimes in this field. At the same time, continue to develop and complete regulations on administrative sanctions and related legal documents.

The Ministry of Industry and Trade requires its affiliated units to rectify multi-level marketing activities.

Along with the work of perfecting the legal system, the Ministry of Industry and Trade requires strengthening inspection, examination, and strict handling of violations; closely monitoring conferences, seminars, and training on multi-level marketing. Closely coordinating with the police and public security forces to prevent and combat violations of the law and negative manifestations in multi-level marketing activities.

The Ministry also directed to promote propaganda and dissemination of legal knowledge to raise awareness among people, to avoid being lured into illegal multi-level forms. At the same time, organize training and improve professional capacity for officials and civil servants at management agencies from central to local levels.

In addition, relevant units are required to promote the application of information technology in management, provide online public services, reduce administrative procedures, make licensing activities transparent and supervise multi-level businesses. Local Departments of Industry and Trade are responsible for advising on the promulgation and strict implementation of regulations on management of multi-level sales activities in the area, coordinate well with competent agencies and periodically report on time to the Ministry of Industry and Trade.

According to the National Competition Commission, there are currently only 20 businesses nationwide with multi-level marketing registration certificates in operation.

In 2023 alone, the Ministry of Industry and Trade inspected 6 enterprises and imposed administrative penalties on 5 enterprises and 1 person participating in multi-level marketing with a total amount of 1,115 billion VND.

Minh Thu

Source: https://doanhnghiepvn.vn/kinh-te/kinh-doanh/chan-chinh-hoat-dong-kinh-doanh-da-cap/20250416040412795